Service index suggests weak GDP recovery (2)

"We expect the policy easing to continue to sustain the recovery in manufacturing in coming months, which should help support services and consumer spending to grow," Qu added.

The Chinese service firms were optimistic about the one-year business outlook, according to the survey.

In contrast, state-owned service enterprises saw their activities expand at a faster pace in October.

The non-manufacturing Purchasing Managers' Index, compiled by the China Federation of Logistics and Purchasing, rose to 55.5 in October from September's 53.7, boosted by higher employment and improved business expectations.

China's gross domestic product grew 7.4 percent year on year between July and September, the slowest in 14 quarters. But economists said China's economy had leveled out of its worst slump since the global financial crisis, as the growth in September exceeded market expectations and showed signs of stabilization.

Zhang Zhiwei, an economist at Nomura, said China's GDP will grow 7.9 percent or 8 percent in the fourth quarter.

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